Common Questions

While attending open houses is much more exciting than filling out paperwork, the first step a homebuyer should take is getting pre-approved for a loan. This helps you determine what kind of home or property you can afford and set a firm budget. Sellers are then able to consider your offer once they know that you have been pre-approved ahead of time.

When determining how much home you can afford and whether you are eligible for a home loan, a lender will look at your credit score. Typically, you need a score of 580 or higher to qualify, but it is recommended to have a 620 or higher. The higher your credit score, the better lending terms you may be eligible for.

 A home seller pays their real estate agent a percentage of the home sale price, and that agent pays the buyer’s real estate agent for bringing in the buyer. A standard commission is 6% of the transaction, which is split between the seller’s agent and the buyer’s agent.

While it depends on the type of loan, most mortgage lenders require at least a 3-percent down payment, and FHA loans require a minimum of 3.5-percent down. The percentage you are required to put down will depend on your credit history, the type of property, and several other factors. The average down payment for homes in CA in 2021 was 19.70%.